The Plano school district's part in financing the Willow Bend redevelopment comes before the City Council on Monday, Oct. 12.
An interlocal agreement on the consent agenda sets the terms for Plano ISD's participation in Tax Increment Reinvestment Zone No. 6, which the council created on June 8 along with an initial project and financing plan. Star Local Media reported in July that the zone will help pay for the Dallas Stars' proposed arena and entertainment district at The Shops at Willow Bend.
The district's board of trustees signed the agreement on Aug. 4, according to a city memo.
What the district puts in
Under the agreement, Plano ISD would put in half of the added revenue its maintenance and operations tax produces from growth in property value inside the zone's original boundary. The district's debt service tax is left out. Its total contribution is capped at $250 million, and the agreement runs through Dec. 31, 2052.
According to the memo, approving it would not have an immediate financial effect. Yearly payments will depend on how much property values grow in the zone and on the district's tax rate.
What the district gets
In exchange, the city would let the district and the community it serves make reasonable use of facilities the city acquires, builds or finances in the zone, for educational, sports, civic and community uses. Plano ISD would pay only its proportional costs for utilities, upkeep and building staff.
An attached list offers examples: graduations and other major district events, administrative meetings, designated ticketing and public access, internships and career pathways, coaching and teaching clinics, a fund for scholarships and grants, branding, and a fixed number of exclusive-use days. The final list could differ.
Those details are to be worked out in separate use agreements with the city and any developer, owner or tenant of the facilities. If enforceable agreements are not signed, the district can cut its contribution to zero or end its participation. It can also pay less if new state law or a legal ruling reduces its state school funding because of the contributions.
The district would also get one seat on the zone's board, and any plan change that raises its share would need trustee approval.
